Managing risk in today’s livestock markets

By Ty Higgins and Brianna Smith

Strong prices in the livestock industry have created both optimism and opportunities to turn a profit. However, volatility, disease concerns, trade uncertainty, and market swings remain a reality. As markets continue to fluctuate, livestock producers are looking for ways to manage risk and protect profits.

“You should be thinking about risk management all the time, not just when the times are good or not just when the times are bad,” Austin Robinson, livestock product specialist with Farm Credit Mid-America, said.

Livestock Risk Protection insurance (LRP) is one tool in the toolbox for a risk management plan. LRP is a subsidized insurance product available to livestock producers, including cattle, dairy, and independent hog operations.

“It’s a way that producers can go out into the future and set price floors on groups of cattle, or a specific number of cattle, and really line those floors up as close as possible when they’re going to market those cattle,” Robinson said.… Continue reading